Top Senate Dem’s New Tax Idea Gets Torched as Critics Warn Nearly Every American Could Pay

Senator Ron Wyden has proposed taxing data centers in the U.S. by ending incentives and imposing a gross receipts tax. Critics argue this “national internet tax” would increase costs for essential online services used by nearly everyone. While Wyden cites concerns over land and resource use, his proposal conflicts with efforts to boost AI development and maintain technological dominance.

• Senator Ron Wyden proposed ending tax incentives and imposing a gross receipts tax on U.S. data centers.
• Critics argue the tax would increase costs for common internet services like email, cloud storage, and social media.
• Wyden’s proposal defines data centers broadly but suggests carveouts, though cloud computing might not be exempted.
• The proposal aims to address concerns about land use, power, and water consumption related to data centers.
• The plan contrasts with President Trump’s focus on accelerating AI development and infrastructure.
• Wyden’s approach is less extreme than calls for a complete moratorium on data center construction.